Frank De Palmenaer is the CEO of ABO-Group Environment NV (EBR:ABO). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Frank De Palmenaer's Compensation Compare With Similar Sized Companies?
According to our data, ABO-Group Environment NV has a market capitalization of €26m, and paid its CEO total annual compensation worth €227k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €155k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €370k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at ABO-Group Environment has changed over time.
Is ABO-Group Environment NV Growing?
On average over the last three years, ABO-Group Environment NV has shrunk earnings per share by 3.1% each year (measured with a line of best fit). Its revenue is up 3.4% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has ABO-Group Environment NV Been A Good Investment?
ABO-Group Environment NV has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that ABO-Group Environment NV remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Frank De Palmenaer is under the median of a group of similar sized companies. But the business isn't growing earnings per share, and the returns to shareholders haven't been wonderful. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer see improved performance, before increasing pay. Shareholders may want to check for free if ABO-Group Environment insiders are buying or selling shares.
If you want to buy a stock that is better than ABO-Group Environment, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.